UK government borrowing exceeded expectations in February, reaching £10.7 billion. The Office for National Statistics reported that while borrowing was up nearly £15 billion for the financial year compared to last year, monthly spending is higher than anticipated. This poses a challenge for Rachel Reeves ahead of next week’s spring statement, where she must address sluggish economic growth, inflation, and increasing borrowing costs.
Updated forecasts by the Office for Budget Responsibility, to be released with Reeves’ statement, are expected to show that the Chancellor’s fiscal rules could be broken without intervention. Chief Secretary to the Treasury, Darren Jones, stressed the need for urgent action to create a more agile and productive state. Sign up for Business Today to stay informed on all this news and analysis each morning. Our Privany Notice: Weekly newsletters may include information about charities, ads, or content funded by outside parties; see our Privacy Policy for more details. Privacy Policy and Terms of Service of Google are applicable when using Google reCaptcha to protect this website.
Jones affirmed the government’s commitment to sound public finances and adherence to non-negotiable fiscal rules, ensuring responsible management of public funds.